Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

09 Dec 2003



PSD disclosed:

03 Nov 2003

Project Description

The proposed project consists of financing an investment programme aimed at (i) modernising existing production facilities, (ii) expanding distribution networks, and (iii) restructuring the balance sheet.
The Company's strategy is to strengthen its position as the leading ice cream and frozen food producer in Serbia and Montenegro and to expand into its operations into the neighbouring countries.

Transition Impact

Transition impact derives from supporting the recent privatisation of the largest frozen food manufacturer in SiM to a large Croatian food conglomerate (one of the first large-scale investments of a Croatian company in the SiM market) and the demonstration effect of successfully restructuring the company. The take-over will include a number of corporate governance changes (some of which have already started), such as a the introduction of a new managerial structure, best practice management information systems, IAS accounting, increased transparency and arms-length transactions. Additional transition impact may derive from the local skills transfer of modern distribution and logistics systems.

The Client

PKB Frikom MDD, a joint stock company incorporated in Serbia and Montenegro. The company is active in the production of ice cream, frozen vegetables and pastry.

EBRD Finance

Corporate loan up to € 13.1 million.

Project Cost

The total project cost amounts to € 47.5 million.

Environmental Impact

The project was screened C/1 requiring an environmental audit of PKB Frikom facilities and a review of Agrokor's corporate environmental policy and procedures. Initial environmental due diligence confirmed that, apart from upgrading wastewater treatment systems, there are unlikely to be any significant issues associated with Frikom's frozen food and ice cream plants The investigations also confirmed that the Agrokor Group has a positive and proactive approach to sustainable development, environmental protection, and health and safety, particularly in relation to food safety and hygiene. Most of Agrokor facilities are ISO 9001- certified and are implementing the Hazard Analysis of Critical Control Points (HACCP) Plan, a US-originating management tool which enables companies to prevent physical, chemical and microbiological hazards in food production. As part of the Bank's legal agreement, an environmental action plan (EAP) will be developed to address the issue of wastewater discharge and any other outstanding environmental issues.

Technical Cooperation


Company Contact

Zeljko Brozovic, General Manager
Tel: +381 11 8871 084

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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